The Financial Supervisory Service has begun on-site inspections of Mirae Asset Life Insurance's subsidiary, Mirae Asset Financial Services, and PS Fine Service, which are involved in the PS Financial Ponzi scheme case, where losses of 200 billion won are anticipated.
The FSS noted, "We have promptly commenced on-site inspections of the general agency associated with the planners involved in the illegal activities to verify the facts and check the situation of insurance consumer damages," adding that it would closely examine the correlation between insurance sales and illegal activity.
The FSS plans to share the findings related to illegal and unlawful activities, such as similar receiving acts, with investigative agencies if confirmed. Previously, the Gangnam Police Department in Seoul began an investigation into Im Mo, the head of PS Financial, and more than 10 others on charges of fraud and similar receiving acts under the Act on the Aggravated Punishment of Specific Economic Crimes. The FSS stated, "We will take strict legal action against those involved in illegal activities."
According to ChosunBiz's reporting, Im, the head of PS Financial, is suspected of having sold 'ultra-short-term corporate bonds' that promise guaranteed principal and offer interest rates of around 10% per month for the past seven years, collecting hundreds of billions of won in investments without repayment. PS Fine Service, which Im has a major stake in, is known to have sold the most products, with some insurance planners from major general agencies, including Mirae Asset Life Insurance, also confirmed to have sold the products. The sellers range from PS Financial representatives and insurance planners to small business owners and general public.
In particular, insurance planners from the subsidiary of Mirae Asset Life Insurance, Mirae Asset Financial Services, recruited 'financial study groups' for 30-something beginning professionals through social media, selling PS Financial products that became problematic during the study process. The insurance planners reportedly received up to 5.5% of the investment amount as commission for selling the products. Legal circles indicate that such actions may likely correspond to similar receiving acts.
The estimated damage is 200 billion won. As of that day, there are 558 members in the PS Financial victim gathering. It is reported that many victims are still unaware of the issues surrounding PS Financial. The number of complaints filed with the police currently amounts to hundreds, and the official damage tally after the investigation is expected to increase beyond this.
Im is currently reported to be missing, unable to contact the victims. The Gangnam Police Department has assigned an investigative team dedicated to the PS Financial case to expedite the investigation.
An FSS official stated, "It appears that there are violations of insurance business law among the general agencies involved in this case," and added, "We plan to actively share any findings related to Ponzi schemes discovered during this inspection with investigative agencies."